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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for taxable entities that employ |
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persons with disabilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter K-1 to read as follows: |
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SUBCHAPTER K-1. TAX CREDIT FOR WAGES PAID TO PERSONS WITH |
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DISABILITIES |
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Sec. 171.571. DEFINITION. In this subchapter, "person with |
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a disability" means a person who, at the time of being hired, has a |
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disability as defined by 42 U.S.C. Section 12102. |
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Sec. 171.572. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.573. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter for wages paid to each person |
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with a disability who is employed by the taxable entity in a |
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position that is located or based in this state. |
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Sec. 171.574. AMOUNT; LIMITATIONS. (a) Subject to |
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Subsection (b), the amount of the credit for a report in connection |
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with each employee described by Section 171.573 is equal to the |
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lesser of: |
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(1) 50 percent of the wages paid by the taxable entity |
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to the employee; or |
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(2) $7,500. |
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(b) The total amount of the credit for each report is equal |
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to the lesser of: |
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(1) the total of the credits allowed under Subsection |
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(a) for the reporting period for all employees described by Section |
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171.573; or |
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(2) the amount of franchise tax due after applying all |
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other applicable credits. |
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Sec. 171.575. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. |
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(b) The comptroller shall promulgate a form for the |
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application for the credit. A taxable entity must use the form in |
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applying for the credit. |
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Sec. 171.576. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter for a report |
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only in connection with wages paid during the accounting period on |
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which the report is based. |
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Sec. 171.577. RULES. The comptroller shall adopt rules |
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regarding the manner by which a taxable entity may demonstrate that |
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an employee is a person with a disability for purposes of this |
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subchapter. |
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SECTION 2. A taxable entity may claim the credit under |
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Subchapter K-1, Chapter 171, Tax Code, as added by this Act, only |
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for wages paid on or after the effective date of this Act and only on |
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a franchise tax report originally due under Chapter 171, Tax Code, |
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on or after that date. |
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SECTION 3. This Act takes effect January 1, 2020. |